The rapid rise in the price of ether may be slowed down by the upcoming launch of Ethereum futures on the Chicago Mercantile Exchange (CME), according to analysts at JPMorgan Chase & Co., quoted by Bloomberg.
“The contracts, which are scheduled to launch on February 8, are evoking memories of 2017, when the start of trading in bitcoin futures coincided with the peak of a leading digital asset ahead of a spectacular collapse,” Bloomberg writes. “An analysis by the Federal Reserve Bank of San Francisco suggests that derivatives have opened the door for investors with bearish expectations.”
JPMorgan global markets strategist Nikolaos Panigirtzoglu argues that the listing of Ethereum futures could also be associated with “negative price action”, adding that primary volumes are likely to be low.
The head of the Asia-Pacific direction of the Luno exchange, Vijay Iyar, believes that ether in this case may not repeat the fate of bitcoin.
“It is known that large players may seek to enter long positions through futures with the emergence of an institutional grade product for this,” he said. “Smart traders moved out of bitcoin when it peaked at around $ 40,000 and made more money.”
One of the factors that will influence the price of ether in the near future is the reopening of Grayscale’s Ethereum trust for investment. On February 3, the first inflow of assets into the Ethereum trust was recorded after a one and a half month break for $ 38 million.
ETH continued to rally this morning after renewing its all-time high on Tuesday and hit $ 1,565, trading close to it at time of publication. As a result, Ethereum 2.0 became the second largest network in terms of the value of staked assets, despite the fact that it only contributed 2.09% of the cryptocurrency turnover. Ethereum 2.0 is currently staking about 2.5 million ETH worth $ 3.6 billion.
Analyst Ayash Jindal believes that a breakout of the $ 1,600 resistance will cause the price of ETH to rise by at least another 5-8% over the next 2-3 sessions. Otherwise, it may roll back to the $ 1,400 level.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
